2015 revenue. It provides products and
services to institutional investors such as
mutual funds, corporate and public retirement plans, and insurance companies.

In 2013, State Street announced a new
information-business division called
State Street Global Exchange that would
combine existing State Street data and
analytics capabilities with new research
to develop information-based solutions
that clients would be willing to buy independently of the company’s core services.

State Street established a new division for
the information business in recognition
of its unique business model needs —
something the company had not done
in 30 years.

Even though it started out as a discrete unit, State Street Global Exchange
focused on developing products that
were tightly associated with State Street’s
core business. For example, State Street
is one of the largest administrators of
private equity assets, which means that
it collects data about the financial capital
that is not noted on a public exchange;
this kind of data is of great value to
markets that require an accurate representation of the private equity industry.
State Street Global Exchange appreciated
that the data was not automatically mon-etizable. Executives secured permission
from 3,000 private equity clients to
aggregate and anonymize that data —
and then created an index that conveyed
the financial performance of the private
equity industry.

State Street leaders realized that theywould need an entirely new operatingmodel to support the information busi-ness. For one, sales processes had tochange because, although State StreetGlobal Exchange often sold to State Streetclients, a buyer of Global Exchange prod-ucts was frequently a different person orcost center than the kind of buyer tradi-tional State Street products attract. Inaddition, the information business re-quired salespeople with different sellingexperience and skills in selling stand-alone data and analytics-based products.

State Street understood that establishing an information business is hard and
takes time. State Street Global Exchange
had to learn to achieve balance between
maintaining key ties with State Street (to
create benefits from being a part of the
larger organization) and responding
quickly to new markets and new needs.
Executives believe that State Street Global

Exchange is gaining significant traction
with its clients — and that their commitment will pay off. But we caution that
such a model is not easy to replicate.
Other companies should think carefully
about the operational capabilities, investment, and commitment required to
successfully sell data.

The Importance ofAccountability

Chances are you have two major obstacles
to monetizing your data. The first is the
accessibility and quality of your data.
Our research has found that only about
a quarter of companies offer employees
and customers easy access to the data
they most need. You can’t monetize data
no one can use.

The second obstacle is lack of accountability. All three approaches to data
monetization require committed leaders

How to Monetize Your Data (Continued from page 11)

who can redirect the behaviors of employees to deliver an important new value
proposition.

Your inclination may be to solve the data
quality issue first with big investments in
new infrastructure. We propose that addressing the second issue of accountability
will create urgency and commitment to
addressing data quality issues — and so
we recommend starting there.

Data monetization through process
improvement requires strong process
leaders. These leaders systematically use
data to analyze the outcomes of existing
processes and test hypotheses about proposed improvements. At Microsoft, for
example, sales managers designated
specific people to reshape and institutionalize new ways of selling. Process
leaders are ultimately responsible for the
design of best practices, the capture of
the right data, the availability of tools,
and the training of all staff regarding how
to use data to do their jobs.

Data monetization through wrapping
requires strong product leaders. These
leaders treat the data that accompanies a
core product or service much like any
other product innovation — they hold it
to the same quality standards. At Capital
One, product leaders know the value of
adding a data or analytics feature to a
credit card because they predict — and
then track — the lift in revenue from
the information as well as the cost of

Only about a quarter of companiesoffer employees and customerseasy access to the data they mostneed. You can’t monetize data noone can use.